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What is the best rate for a used car loan?

What is the best rate I can get for a used car loan? I’m 22 and have a credit score of 615. I already picked out the vehicle I want but need to take out a loan. I’m not sure what to expect.

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Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Determining the best rate for a used
car loan
is challenging because lenders rely on many factors to generate rates. But with a nonprime credit score of 615, the best rate you’ll likely get is around 10.49%.
While 10.49% is the average used car loan rate for borrowers with a credit score between 601 and 660, lenders use many factors to determine rates. So, your offer may vary.
Besides credit score and history, lenders also consider:
  • Income and employment history
  • Debt-to-income ratio
  • Amount borrowed
  • Term length
  • Vehicle purchased
If you want the peace of mind of knowing you’re getting the best rate, you should compare offers from several lenders. Shop around with:
  • Local and national banks
  • Credit unions
  • Online lenders
  • Dealerships
If the loan is a bit more expensive than you expected, increasing the size of your
down payment
or having a cosigner could further lower your rate.
Additionally, you can recoup some of the cost by using
Jerry
to save on your
car insurance
.
It’s this simple: Download the Jerry app or go to getjerry.com. In less than 45 seconds, Jerry collects all of your information from your existing insurer. Choose from competitive quotes from 50-plus top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. The average Jerry user saves $879 a year on car insurance.
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